Press Release
HAMILTON, Bermuda, Feb 25, 2009 (GlobeNewswire via COMTEX News Network) -- Maiden Holdings, Ltd. (Nasdaq:MHLD), today reported net income of $20.0 million or $0.34 per share for the fourth quarter ended December 31, 2008. Net written premium for the fourth quarter 2008 was $340.5 million.
"We are pleased with the Company's fourth quarter results and significant growth reflecting the acquisition of GMAC RE. With profitable underwriting, strengthened earnings and a high quality investment portfolio we are well positioned to build upon strong customer relationships and continue the Company's profitable expansion," stated Art Raschbaum, President and CEO of Maiden Holdings, Ltd.
Fourth Quarter and Full Year 2008 Highlights:
* Net written premium for fourth quarter 2008 was $340.5 million * Net written premium for the year ended December 31, 2008 was $727.4 million * Operating earnings of $16.8 million for the quarter ended December 31, 2008 * Operating earnings for the year ended December 31, 2008 were $58.0 million * Annualized return on equity for the fourth quarter was 16.1% * The combined ratio for the fourth quarter was 97.2%(1) * The combined ratio for the full year ended December 31, 2008 was 94.9%(1) * Book value per share was $8.70 as of December 31, 2008, an increase of $0.68 over September 30, 2008
Fourth Quarter and Full Year 2008 Results:
Revenue:
Net written premium for the fourth quarter was $340.5 million and net earned premium was $163.8 million. For the year ended December 31, 2008, net written premium was $727.4 million and net earned premium was $420.1 million compared to $247.4 million net written premium and net earned premium of $110.2 million in 2007, following mid-year commencement of operations.
Net investment income for the quarter ended December 31, 2008 was $12.9 million, net investment income for the year was $37.2 million compared to $15.2 million in 2007.
Net realized investment gains for the quarter ended December 31, 2008 were $4.8 million. During the year ended December 31, 2008 the Company realized net investment losses of $37.6 million.
Operating earnings for the quarter ended December 31, 2008 were $16.8 million. Operating earnings is a non-GAAP financial measure defined by the Company as net income, excluding realized investment gains and losses and non-recurring general and administrative expenses related to the acquisition of GMAC RE. Operating earnings for the year ended December 31, 2008 were $58.0 million compared to operating earnings of $21.9 million for 2007. The Company recorded net income of $20.0 million for the fourth quarter and $18.8 million for the year ended December 31, 2008.
Expenses:
For the fourth quarter ended December 31, 2008, the Company's loss and loss adjustment expenses were $115.3 million, the loss ratio for the quarter was 70.4%, for the year ended December 31, 2008 the loss ratio was 62.8%.
The Company's expense ratio for the fourth quarter 2008 was 26.8%(1) and 32.1%(1) for the year ended December 31, 2008.
For 2007 the Company's loss ratio was 59.0% and the expense ratio was 34.9%.
Other Matters:
Shareholders' equity as of December 31, 2008 was $509.8 million compared to $537.3 million as of December 31, 2007. During the fourth quarter the Board of Directors declared a dividend of $0.06, during the year ended December 31, 2008 the Company declared total dividends of $0.21. Book value per share as of December 31, 2008 was $8.70.
During the first quarter of 2009 Maiden's wholly owned subsidiary Maiden Holdings North America, Ltd. issued debentures in the amount of $260 million, as part of the transaction Maiden issued 11.7 million shares of common stock to the purchasers of the debentures.
Conference Call:
On Thursday, February 26th, at 11:00 a.m. Atlantic Time (10:00 a.m. ET), the Company will hold a conference call regarding its fourth quarter earnings and full year results:
Toll Dial-in (International Callers): 719.325.4804 Toll-free Dial-in: 877.879.6209 Webcast: http://ir.maiden.bm
In order to participate in the conference call, you must register at http://ir.maiden.bm. At the time of the call slides will be available for reference at http://ir.maiden.bm.
A replay of the conference call will be available starting at 2:00 p.m. Atlantic Time on Thursday, February 26th, 2009 through Thursday, March 5th, 2009 by dialing toll 719.457.0820 or toll-free 888.203.1112. The passcode for the replay is 1025974. Replay of the webcast will also be available at http://ir.maiden.bm.
About Maiden Holdings, Ltd.
Maiden Holdings, Ltd. is a Bermuda holding company formed in 2007 to offer customized reinsurance products and services to regional and specialty insurance companies in the United States and Europe.
The Maiden Holdings, Ltd. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5006
Forward Looking Statement
This release contains "forward-looking statements" which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are based on the Company's current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that actual developments will be those anticipated by the Company. Actual results may differ materially from those projected as a result of significant risks and uncertainties, including non-receipt of the expected payments, changes in interest rates, effect of the performance of financial markets on investment income and fair values of investments, developments of claims and the effect on loss reserves, accuracy in projecting loss reserves, the impact of competition and pricing environments, changes in the demand for the Company's products, the effect of general economic conditions, adverse state and federal legislation, regulations and regulatory investigations into industry practices, developments relating to existing agreements, heightened competition, changes in pricing environments, and changes in asset valuations. The Company undertakes no obligation to publicly update any forward-looking statements.
Maiden Holdings, Ltd.
Income Statement
(in thousands (000's), except per share data)
(Unaudited)
For the For the Period from
Three Three For the May 31, 2007
Months Months Year Ended (inception)
Ended Ended December 31, to
December 31, December 31, 2008 December 31,
2008 2007 2007
Revenues:
Premium income:
Net premiums written $ 340,525 $ 56,552 $ 727,395 $ 247,353
Change in unearned
premiums (176,681) (9,332) (307,313) (137,166)
---------- ---------- ---------- ----------
Net earned premium 163,844 47,220 420,082 110,187
Net investment income 12,894 7,672 37,240 15,233
Net realized
investment
gains (losses) 4,819 83 (37,555) 170
---------- ---------- ---------- ----------
Total revenues 181,557 54,975 419,767 125,590
---------- ---------- ---------- ----------
Expenses:
Loss and loss
adjustment expenses 115,322 27,350 263,682 65,017
Commission and other
acquisition expenses 34,644 15,218 119,703 35,525
Amortization of
intangible assets 1,253 -- 1,253 --
Foreign exchange loss 998 1 1,362 1
General and
administrative
expenses 9,337 1,583 14,973 2,960
---------- ---------- ---------- ----------
Total expenses 161,554 44,152 400,973 103,503
---------- ---------- ---------- ----------
Net income $ 20,003 $ 10,823 $ 18,794 $ 22,087
========== ========== ========== ==========
Operating earnings(2) $ 16,820 $ 10,740 $ 57,985 $ 21,917
========== ========== ========== ==========
Basic and diluted
earnings per
common share $ 0.34 $ 0.18 $ 0.32 $ 0.44
========== ========== ========== ==========
Dividends declared
per common share $ 0.06 $ -- $ 0.21 $ 0.025
========== ========== ========== ==========
Weighted average
number of basic
and diluted shares
outstanding 58,734,106 59,550,000 59,344,912 50,759,772
Combined ratio 98.6% 93.5% 95.5% 93.9%
Combined ratio
(excl. amortization
of intangible assets
and foreign
exchange) (1) 97.2% 93.5% 94.8% 93.9%
Annualized return
on equity 16.1% 8.0% 3.6% 14.1%
Maiden Holdings, Ltd.
Balance Sheet
(in thousands (000's), except per share data)
(unaudited)
(Unaudited)
31-Dec-08 31-Dec-07
Assets
Fixed maturities, available-for-sale,
at fair value (amortized cost $460,754;
$$488,765) $ 458,364 $ 474,789
Other investments, at fair value
(cost $5,818; $15,176) 5,291 15,656
Restricted investments, at fair value
(amortized cost $703,173) 661,591 --
---------- ----------
Total investments 1,125,246 490,445
Cash and cash equivalents 131,897 35,729
Restricted cash and cash equivalents 409,277 --
Accrued investment income 10,293 3,204
Reinsurance balances receivable, net 71,895 27,990
Loan to related party 167,975 113,542
Prepaid expenses and other assets 1,141 454
Deferred commission and other acquisition
costs 104,470 44,215
Furniture and equipment, net 1,443 29
Goodwill 49,747 --
Intangible assets 55,147 --
Due from broker 33 --
---------- ----------
Total Assets $2,128,564 $ 715,608
========== ==========
Liabilities and Shareholders' Equity
Liabilities
Loss and loss adjustment expense reserves $ 895,608 $ 38,508
Unearned premiums 444,479 137,166
Accrued expenses and other liabilities 46,072 2,589
Securities sold under agreements to
repurchase, at contract value 232,646 --
---------- ----------
Total Liabilities 1,618,805 178,263
---------- ----------
Shareholders' Equity:
Common shares 596 596
Additional paid-in capital 530,519 529,647
Treasury stock (3,801) --
Accumulated other comprehensive loss (44,499) (13,496)
Retained earnings 26,944 20,598
---------- ----------
Total Shareholders' Equity 509,759 537,345
---------- ----------
Total Liabilities and Shareholders' Equity $2,128,564 $ 715,608
========== ==========
Book value per share $ 8.70 $ 9.02
Common shares outstanding 58,587,664 59,550,000
Maiden Holdings, Ltd.
Income Statement
(in thousands (000's), except per share data)
(Unaudited)
For the For the Period from
Three Three For the May 31, 2007
Months Months Year Ended (inception)
Ended Ended December 31, to
December 31, December 31, 2008 December 31,
2008 2007 2007
Reconciliation of
net income to
operating earnings:
Net income $ 20,003 $ 10,823 $ 18,794 $ 22,087
Less: Net realized
gains (losses) 4,819 83 (37,555) 170
Add: Non-recurring
general and
administrative
expenses relating
to acquisition of
GMAC Re 1,636 -- 1,636 --
---------- ---------- ---------- ----------
Operating earnings(2) $ 16,820 $ 10,740 $ 57,985 $ 21,917
========== ========== ========== ==========
Operating earnings
per common share:
Basic and diluted
earnings per share $ 0.29 $ 0.18 $ 0.98 $ 0.43
(1) Combined and expense ratios exclude amortization of intangible
assets and foreign exchange loss.
(2) Net operating income is a non-GAAP financial measure defined by
the Company as net income excluding realized investment gains and
losses and non-recurring general and administrative expenses relating
to acquisition, which provides a useful indicator of trends in the
Company's underlying operations.
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: Maiden Holdings, Ltd.
Maiden Holdings, Ltd.
Devora M. Goldenberg
441.292.7090
irelations@maiden.bm
(C) Copyright 2009 GlobeNewswire, Inc. All rights reserved.
News Provided by COMTEX